Ghana: Gold Mining Resurgence: Difference between revisions

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[[File:Ghana Map.jpg|thumb|Ghana Map]]
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=Introduction=
=Introduction=
The theme of developing countries is important in the globalization debate – they are often considered to be witnesses to global economic development fuelled by multinational corporations. Mineral resources are traditional sources of income in these countries not requiring great input of know-how to profit from its export.  
The theme of developing countries is important in the globalization debate – they are often considered to be witnesses to global economic development fuelled by multinational corporations. Mineral resources are traditional sources of income in these countries not requiring great input of know-how to profit from its export.  
==Globalization==
==Globalization==
This is a complex phenomenon and can be viewed from different (disciplinary) perspectives. Our viewpoint: direct impact at the local level – on the quality of life in diverse parts of the world.
This is a complex phenomenon and can be viewed from different (disciplinary) perspectives. Our viewpoint: direct impact at the local level – on the quality of life in diverse parts of the world.
 
[[File:Volta view of the dam.jpg|thumb|left|Volta view of the dam]]
Economy – the driving force of globalization processes. However, the economy looks different from the global and local perspective: due to on-going trade liberalisation and increasing opportunities for investment across national borders, the global production and distribution network have become even more interconnected, their efficiency has increased, and they no longer take heed of boundaries and borders; the globalised economic maximizes its profit but also brings cheap goods to underdeveloped regions. However, from the local perspective, globalization economic processes might block local initiatives as it neglects local specifics – social, cultural and political conditions, and of course the traditional economy based on those same conditions. In the past, tariffs would have been imposed on imports in developing countries in order to nurture and incubate local industry and hence protect it from foreign competition, just as new industries had once been protected in developed societies, but the demands of the global economy and the World Trade Organization require opening up markets in developing nations to the full force of global competition. Globalization in a certain sense means universalization, and its economic imperatives destroy local diversity which often means neglecting local consumption needs or patterns. Local people are perceived as the “labour force” – economic characteristics are important but traditional skills are not valued any more.  
Economy – the driving force of globalization processes. However, the economy looks different from the global and local perspective: due to on-going trade liberalisation and increasing opportunities for investment across national borders, the global production and distribution network have become even more interconnected, their efficiency has increased, and they no longer take heed of boundaries and borders; the globalised economic maximizes its profit but also brings cheap goods to underdeveloped regions. However, from the local perspective, globalization economic processes might block local initiatives as it neglects local specifics – social, cultural and political conditions, and of course the traditional economy based on those same conditions. In the past, tariffs would have been imposed on imports in developing countries in order to nurture and incubate local industry and hence protect it from foreign competition, just as new industries had once been protected in developed societies, but the demands of the global economy and the World Trade Organization require opening up markets in developing nations to the full force of global competition. Globalization in a certain sense means universalization, and its economic imperatives destroy local diversity which often means neglecting local consumption needs or patterns. Local people are perceived as the “labour force” – economic characteristics are important but traditional skills are not valued any more.  
 
[[File:Kakum.jpg|thumb|Kakum]]
So, an economy which is a driving force for development in terms of GDP growth is not usually accompanied by cultural development, which is a local matter, but generating educated and motivated citizens to cope with its challenges. The global economic paradigm in which  multinational corporations (MNCs) operate is thus an external “engine” for development – if it is “applied” where political, social and other conditions have not been prepared then local development could be substantially distorted.  
So, an economy which is a driving force for development in terms of GDP growth is not usually accompanied by cultural development, which is a local matter, but generating educated and motivated citizens to cope with its challenges. The global economic paradigm in which  multinational corporations (MNCs) operate is thus an external “engine” for development – if it is “applied” where political, social and other conditions have not been prepared then local development could be substantially distorted.  


Some developing countries have experienced the so-called “Dutch Disease” which is “a name applied to the phenomenon experienced by countries which have a rich endowment of minerals, the result of which is that the economy of the country becomes heavily reliant upon the revenues received from mineral sales, at the expense of the growth of other industries.” From the point of view of businesses, including mining companies, these factors are important for the predictability of investments (and are also indicators of countries’ performance): international competitiveness; efficient bureaucracy; a good tax system; training of people; a wide pool of human resources; exchange controls; labour productivity; government spending; level of corruption; infrastructural development; economic stability; crime; political stability. <ref>Mining, Minerals and Economic Development and the Transition to Sustainable Development in Southern Africa, Chapter 6.0 Globalisation & 7.0 Dutch Disease. Available from http://pubs.iied.org/pdfs/G00603.pdf</ref>
Some developing countries have experienced the so-called “Dutch Disease” which is “a name applied to the phenomenon experienced by countries which have a rich endowment of minerals, the result of which is that the economy of the country becomes heavily reliant upon the revenues received from mineral sales, at the expense of the growth of other industries.” From the point of view of businesses, including mining companies, these factors are important for the predictability of investments (and are also indicators of countries’ performance): international competitiveness; efficient bureaucracy; a good tax system; training of people; a wide pool of human resources; exchange controls; labour productivity; government spending; level of corruption; infrastructural development; economic stability; crime; political stability. <ref>Mining, Minerals and Economic Development and the Transition to Sustainable Development in Southern Africa, Chapter 6.0 Globalisation & 7.0 Dutch Disease. Available from http://pubs.iied.org/pdfs/G00603.pdf</ref>
[[File:Volta lake.jpg|left|thumb|Volta lake]]
This is visible under the local circumstances of the case study. Ghana is rich in natural resources but has low technological capacity to develop its mining industry. Large mining companies can bring in the technological innovation needed but their operations should ideally be supported and controlled by national institutions. If these are not fully functional in terms of administrative capability and transparent governance, then there is the risk that the environmental and other consequences of mining activities may be considered “externalities” and therefore will not be adequately addressed by foreign companies. In some cases, the local economy may not have the capacity to absorb large amounts of income from mining activities, which may in turn fuel corruption <ref>i.e. inadequate strategic planning regarding long-term sustainable economic development via the creation of some sort of ‘National Fund’, such as Norway did when it discovered large oil reserves in the 1970s, can lead directly to a ‘resource curse’ – sudden huge inflows of cash without proper oversight leading to enrichment of corrupt elites</ref>.


This is visible under the local circumstances of the case study. Ghana is rich in natural resources but has low technological capacity to develop its mining industry. Large mining companies can bring in the technological innovation needed but their operations should ideally be supported and controlled by national institutions. If these are not fully functional in terms of administrative capability and transparent governance, then there is the risk that the environmental and other consequences of mining activities may be considered “externalities” and therefore will not be adequately addressed by foreign companies. In some cases, the local economy may not have the capacity to absorb large amounts of income from mining activities, which may in turn fuel corruption <ref>i.e. inadequate strategic planning regarding long-term sustainable economic development via the creation of some sort of ‘National Fund’, such as Norway did when it discovered large oil reserves in the 1970s, can lead directly to a ‘resource curse’ – sudden huge inflows of cash without proper oversight leading to enrichment of corrupt elites</ref>. [[File:Ghana Map.jpg|thumb|Ghana Map]]
Ghana has gone through rapid economic development (based on the resurgence of its mining industry since 1989) that was based on liberalization of the environment for private (foreign) investments. However, the benefit for the country was quite negative, as it has led to not only considerable social costs (growing conflicts with local mining communities) but also huge environmental costs. (Read <ref name=Akabzaa>Akabzaa, T., & Darimani, A. (2001). Impact of mining sector investment in Ghana: A study of the Tarkwa mining region. Draft Report prepared for SAPRI, Available from http://www.saprin.org/ghana/research/gha_mining.pdf</ref>, pp. 3-4)


Ghana has gone through rapid economic development (based on the resurgence of its mining industry since 1989) that was based on liberalization of the environment for private (foreign) investments. However, the benefit for the country was quite negative, as it has led to not only considerable social costs (growing conflicts with local mining communities) but also huge environmental costs. (Read <ref name=Akabzaa>Akabzaa, T., & Darimani, A. (2001). Impact of mining sector investment in Ghana: A study of the Tarkwa mining region. Draft Report prepared for SAPRI, Available from http://www.saprin.org/ghana/research/gha_mining.pdf</ref>, pp. 3-4)
==Ghana & mining==
==Ghana & mining==
Ghana is a beautiful country of West Africa with a tropical climate and wonderful national parks<ref>http://www.ghanaweb.com/GhanaHomePage/tourism/parks.php</ref> protecting its environmental heritage.
Ghana is a beautiful country of West Africa with a tropical climate and wonderful national parks<ref>http://www.ghanaweb.com/GhanaHomePage/tourism/parks.php</ref> protecting its environmental heritage.
Learn more from <ref>Geography of Ghana. (2011, June 25). In Wikipedia, The Free Encyclopedia. Retrieved 15:55, November 11, 2011, from http://en.wikipedia.org/w/index.php?title=Geography_of_Ghana&oldid=436234226 (You might consult Wikipedia for orientation but not cite it as a resource!) </ref>
Learn more from <ref>Geography of Ghana. (2011, June 25). In Wikipedia, The Free Encyclopedia. Retrieved 15:55, November 11, 2011, from http://en.wikipedia.org/w/index.php?title=Geography_of_Ghana&oldid=436234226 (You might consult Wikipedia for orientation but not cite it as a resource!) </ref>
And visit Google Earth (Google Earth – UNEP Atlas) to see the local context as well as <ref>http://na.unep.net/atlas/google.php</ref>
And visit Google Earth (Google Earth – UNEP Atlas) to see the local context as well as [http://na.unep.net/atlas/google.php UNEP Atlas of Environmental Hotspots] to have an idea of main issues <ref>http://na.unep.net/atlas/google.php</ref>.
 
Ghana’s history is very closely connected with mining – from ancient times to the colonization period until the present day when economic transformation (and income) is largely based on the mining industry. Ghana’s official name until its independence in 1957 was the Gold Coast reflecting the fact that gold was most important and widespread mineral resource, replaced by bauxite and manganese only in the last century. Many wars for gaining control over the gold resources occurred throughout its history, followed by an economic struggle in recent times – gold is still one of the most important exports.
Ghana’s history is very closely connected with mining – from ancient times to the colonization period until the present day when economic transformation (and income) is largely based on the mining industry. Ghana’s official name until its independence in 1957 was the Gold Coast reflecting the fact that gold was most important and widespread mineral resource, replaced by bauxite and manganese only in the last century. Many wars for gaining control over the gold resources occurred throughout its history, followed by an economic struggle in recent times – gold is still one of the most important exports.


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Globalization in world politics – restructured power. National governments should have the capacity to face pressures from MNCs: especially legislative capacity to prevent environmental damage (not regulated pollution aspects). There should be relevant institutional support for dealing with the problems generated.  
Globalization in world politics – restructured power. National governments should have the capacity to face pressures from MNCs: especially legislative capacity to prevent environmental damage (not regulated pollution aspects). There should be relevant institutional support for dealing with the problems generated.  
Any other “discovered” by us?
Any other “discovered” by us?
==References==
==References==
<references/>
<references/>


--[[User:Jana Dlouha|Jana Dlouha]] 22:10, 12 November 2011 (CET)
{{License cc|Jana Dlouhá (tutor of the course and editor)}}
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